The World Bank has revealed that exposure to internet access after more than three years resulted in a 7% reduction in extreme poverty in Nigeria and Tanzania.
This exposure resulted in an 8% rise in labour force participation and pay employment.
The bank issued a new brief that read: “In 2023, a World Bank flagship report found that in Nigeria and Tanzania, extreme poverty declined by about 7% after three or more years of exposure to internet coverage, while labour force participation and wage employment increased by up to 8%.”
The brief further indicates that during the past five years (2016-2021), Sub-Saharan Africa (SSA) had an exceptional 115% rise in internet users and that this change has been instrumental in spurring economic growth, fostering innovation, and creating job opportunities.
Despite positive progress, the path to digital inclusivity faces challenges, including the cost of mobile connectivity and a persistent digital gender gap.
The cost of mobile internet remains expensive, and women utilize it 37% less than males. These issues underline the importance of continuing efforts to make digital access more equal and widespread.
The brief stated: “The region’s digital infrastructure coverage, access, and quality continue to lag behind neighbouring regions. At the end of 2021, while 84% of people in SSA resided in locations with 3G service and 63% had access to 4G mobile coverage, just 22% used mobile internet.
The difference between coverage and usage of broadband is similarly substantial, with 61% of persons in Sub-Saharan Africa living within the broadband range but not using it.
“Affordability of mobile connectivity, measured by the cost of one gigabit of mobile data, is another significant limitation. In 2019, the average cost of one GB of mobile internet as a proportion of monthly per-capita Gross National Income was 10.5%, much exceeding the United Nations Broadband Commission’s 2% target.
Furthermore, in 2021, the median cost of an entry-level internet-enabled handset exceeded 25.2% of monthly GDP per capita.
According to the GSMA research, the region has one of the world’s largest digital gender gaps. The greatest disparity appears in internet use, with women 37% less likely than males to use mobile internet in 2023.
With over 5 million active internet subscribers in Nigeria, there is still a need for increased internet coverage to promote inclusive economic growth.
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, recently stated that the cost of data in Nigeria remains one of the lowest in the world, but that many operators are unwilling to lay fibre outside of major cities because it would be unprofitable.
According to the World Bank Chief Economist for Africa, Andrew Dabalen, the low use of mobile internet is a missed opportunity for equitable growth in Africa. Closing the uptake gap would strengthen the continent’s capacity to produce jobs for its expanding population and boost economic recovery in a digitalized world.”
